General Money Management & Personal Savings and Investment Element 45 pg.211 Element 46 pg.213

OBJECTIVES What money management encompasses What the basic rule of thumb is when it comes to money management What a cash flow statement is used for The four common types of investments

REFERENCES www.militaryonesource.mil Saveandinvest.org https://www.moneyadviceservice.org.uk/en/articles/begi nners-guide-to-managing-your-money A Trader's Money Management System: How to Ensure Profit and Avoid the Risk of Ruin Hardcover – July 8, 2008 by Bennett A. McDowell (Author), Steve Nison (Foreword) Money Management Strategies for Futures Traders 1st Edition by Nauzer J. Balsara

MONEY MANAGEMENT 101 Money management encompasses how you handle monetary assets Process of budgeting, saving, investing, spending or otherwise overseeing the capital usage To achieve your goal you have to plan ahead

RULE OF THUMB Basic rule of thumb when it comes to money management is to have at least three to six months of living expenses in a savings account In case of loss wages and other emergencies- set a savings goal early

CASH FLOW STATEMENT Statement used to summarize income and expense transactions that have taken place over a specific period of time, such as a month or year. Tells you where your money came from and where it went

FOUR TYPES OF INVESTMENTS BONDS- the most inexpensive type. Safety of a bond is based on the financial stability of the issuing entity STOCKS- stock market dependent Stocks purchase an ownership share in a company MUTUAL FUND- the most common type of investment Investment vehicle compromised of a pool of funds, from many investors, for the purpose of investing in securities. CERTFICATE OF DEPOSITE- differs from a traditional savings account that it has a specific fixed term. Insured savings accounts issued by banks and savings and loans.

LOCAL RESOURCES Fleet and Family Support Center Command Financial Specialist – CS1 Amoabeng (NAS Jacksonville) Navy Federal Credit union

REVIEW AS A RULE OF THUMB HOW MANY MONTHS OF SAVINGS IS RECOMMENDED? WHAT ARE TWO TYPES OF INVESTMENTS?

SUMMARY Discussed what money management encompasses Discussed the basic rule of thumb when it comes to money management Discussed what a cash flow statement is used for Discussed the four common types of investments